The Analytical Overview of the Main Currency Pairs on 2017.12.11

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.17719

Open: 1.17649

% chg. over the last day: -0.08

Day's range: 1.17639 – 1.17950

52 wk range: 1.0341 – 1.2069

Last week, the US dollar strengthened against the major currencies. The fall in the EUR/USD quotations exceeded 130 points. On Friday, December 8, the US published mixed data on the labor market. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating in the range of 1.17650-1.18000. It is recommended to open positions if the price fixes above/below these marks. The key event this week will be the Fed's meeting, which will be held on December 13.

At 17:00 (GMT+2:00) the data on the number of open jobs in the JOLTS labor market will be released.

Indicators do not send accurate signals. The price fixes between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is located in the positive zone and continues to rise, which signals a correction of the EUR/USD currency pair.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.17650, 1.17300, 1.17000

Resistance levels: 1.18000, 1.18500

If the price fixes above the round level of 1.18000, the correction of the EUR/USD quotes is expected. The movement is tending to 1.18500.

Alternative option. If the price fixes below 1.17650, it is necessary to consider sales of EUR/USD. The target level of movement is 1.17300-1.17000.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.34730

Open: 1.33700

% chg. over the last day: -0.61

Day's range: 1.33616 – 1.34314

52 wk range: 1.1450 – 1.3618

On Friday, the bearish sentiment prevailed on the GBP/USD currency pair. The drop in quotations exceeded 100 points. The trading instrument has the potential to further reduce. At the moment, the price is testing the local support of 1.33600. The mark 1.34500 is already a "mirror" resistance. We recommend opening positions in the direction of the current trend.

The news feed on the UK economy is calm. It is necessary to follow up-to-date information on the Brexit process.

The indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a fall in GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which sends a signal to sell GBP/USD.

Trading recommendations

Support levels: 1.33600, 1.33000

Resistance levels: 1.34500, 1.35250

If the price fixes below the local support of 1.33600, it is necessary to consider sales of GBP/USD. The movement is tending to the round level of 1.33000. When following the positions, we recommend using a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28532

Open: 1.28468

% chg. over the last day: -0.05

Day's range: 1.28307 – 1.28639

52 wk range: 1.2059 – 1.3795

Last week, the Canadian dollar significantly weakened against the US currency after the Bank of Canada meeting. At the moment, the technical pattern is ambiguous. The trading instrument is in a sideways trend. The key support and resistance levels are 1.28200 and 1.28600. Correction is not ruled out in the near future. Positions must be opened from the key levels.

The news feed on Canada's economy is calm.

The indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is located near the 0 mark.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which sends a signal to buy USD/CAD.

Trading recommendations

Support levels: 1.28200, 1.27600

Resistance levels: 1.28600, 1.29000

If the price fixes below the level of 1.28200, we recommend looking for entry points to the market to open short positions. The target level of movement is 1.27600.

Alternative option. If the USD/CAD quotes overcome the level of 1.28600, it is necessary to consider purchases. The movement is tending to the round level of 1.29000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.084

Open: 113.525

% chg. over the last day: +0.35

Day's range: 113.358 – 113.691

52 wk range: 99.53 – 118.67

On the USD/JPY currency pair, the "bullish" sentiment has been prevailing for quite a long time. Nevertheless, a technical correction is not ruled out in the near future. At the moment, the for quite a long time quotations are consolidating. The following key support and resistance levels can be identified: 113.250 and 113.650, respectively. The positions must be opened from these marks. We recommend paying attention to the US government bonds yield.

The publication of important economic reports from Japan is not planned.

The signals of the indicators are different. The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram has begun to decline and has fixed below the signal line, which indicates the correction of the USD/JPY currency pair.

Stochastic Oscillator is located near the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 113.250, 112.750, 112.350

Resistance levels: 113.650, 114.000

If the price fixes below the level of 113.250, the correction of the USD/JPY quotes is expected. The movement is tending to the "mirror" support level of 112.750.

Alternative option. If the price fixes above the level of 113.650, it is necessary to consider buying USD/JPY. The closest target for profit taking is the round level of 114.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.